Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
CostHelper > Personal Finance  > Taxes & Financial Planning > Financial Planner

Financial Planner Cost


How Much Does a Financial Planner Cost?

 
low costHourly Rates: $100-$400average costFlat Fees: $400-$500high costComprehensive Financial Review: $1,600-$4,000

A financial planner helps clients create formal plans to manage their money over the long term to reach their goals (such as retirement or sending children to college), including the flexibility to handle financial emergencies. In a related service, a financial adviser (also called an investment adviser) will assess a client's current financial situation, compare it to the financial plan, and recommend appropriate next steps to follow the plan. Most financial planners are also financial advisors, but not all financial advisors are financial planners. The Security and Exchange Commission provides overviews of financial planners[1] and investment advisers[2] .

Typical costs:

  • Certified financial planners generally charge in one of three ways: a fixed or hourly fee for a specific service (called fee-only); no fee but with a commission earned on the products bought; or a combination of a fee for the planning process and commissions on the products bought. The Financial Planning Association provides an overview of how planners charge for their services[3] , and Invest-FAQ.com describes the biases and potential conflicts[4] in each of the ways financial planners are compensated.
  • Hourly rates can cost $100-$400, depending on location and the planner's qualifications, but average $175 an hour, according to Financial-Advisors.in. New Means Financial Planning, a fee-only service in New Hampshire, estimates that a financial consultation for clients in their 20s and early 30s can cost $540-$900, while a pre-retirement assessment could be $1,080-$1,800, and a comprehensive financial review might run $1,620-$3,960. Minerva Planning Group in Atlanta, Georgia, describes a sample retirement plan[5] that required seven hours of work at $190 an hour, for a total cost of $1,330. Flat fees (rather than hourly rates) are generally based on an average number of hours of work, and start around $400-$500 for basic financial plans and increase depending on the scope and complexity.
  • Commissions range from 1 percent or less on money market accounts and treasury bills, up to 5.5 percent on mutual funds (which translates to $500-$2,375 on a $50,000 investment). Most financial planners will provide a half-hour or hour-long initial interview for free.
Related articles: Tax Returns, Stock Broker, Brakes, IRA

What should be included:
  • Financial planner services can range from a one-time analysis to ongoing oversight of any investments and other accounts. A financial planner may help with decisions like how large of a monthly mortgage payment a first-time homebuyer can handle without harming other financial areas, when to refinance a house, or deciding when and how to retire. The US Securities and Exchange Commission[6] provides a brief overview.
Shopping for a financial planner:
  • Legally, anyone can call themselves a financial planner. However, several industry groups have credentialing programs; it's possible to search[7] the Financial Industry Regulatory Authority for an explanation of specific professional designations, such as Certified Financial Planner (CFP).
  • Interview several planners to learn more about their skills, training, personality and services. If possible, meet face-to-face. Ask specific questions about their expertise, services included and what the plan will look like when the process is complete. The Financial Planning Association lists questions to ask[8] . The National Association of Personal Financial Advisors, whose members are all fee-only planners, provides tips and tools[9] for choosing a financial planner. And MSN.com lists 8 Things a Financial Planner Won't Tell You[10] .
  • Search for local financial planners with the Certified Financial Planner Board of Standards[11] , Financial Planning Association[12] or the National Association of Personal Financial Advisors[13] .
  • The financial planner selected will provide a written agreement clearly outlining all the services that will be provided. Keep this document on file for future reference.
post Post   Comments (1)  
CostHelper News


7 Lesser-Known Discounts for the 50+ Crowd
As they age, members of the Baby Boomer generation don't like to admit that they're senior citizens, but they love getting discounts. It's kind of a quandary, because some of the best deals available are reduced prices for older folks. || Posted October 21 2013


7 Ways to Stretch Your Reduced Food Budget
End of the year budgets are tight for everyone, especially in this economy.It's especially hard for the millions of Americans who depend on government programs like food stamps to help make ends meet. || Posted November 11 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments
Financial Planning Advice
Amount: $5,000.00 total
Posted by: Prasad in Kansas City, MO.Posted: October 3rd, 2014 09:10AM
Commission or Fee Only: Fee OnlyType of Service: Financial Planning
Ran 5 different scenarios to cover our current assets and liabilities across three countries
Was this post helpful to you?   yes     no Report prohibited or spam


 

Comment On Your Experience With a Financial Planner
 
Subject:  *
Amount Spent:  * total
Commission or Fee Only: Type of Service: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.sec.gov/answers/finplan.htm
  2.  www.sec.gov/investor/pubs/invadvisers.htm
  3.  www.fpanet.org/FindaPlanner/HowPlannersCharge/
  4.  invest-faq.com/articles/fplan-compensation.html
  5.  www.minervaplanninggroup.com/sample-financial-plans/
  6.  www.sec.gov/answers/finplan.htm
  7.  apps.finra.org/DataDirectory/1/prodesignations.aspx
  8.  www.fpanet.org/FindaPlanner/ChoosingaPlanner/QuestionstoAsk/
  9.  www.napfa.org/tips_tools/index.asp
  10.  money.msn.com/retirement/
  11.  www.cfp.net/utility/find-a-cfp-professional
  12.  www.fpanet.org/PlannerSearch/PlannerSearch.aspx
  13.  findanadvisor.napfa.org/Home.aspx
More Personal Finance Topics
Check Out All Costs for Personal Finance How Much Does Closing a Home Cost? How Much Does a Traffic Ticket Attorney Cost? How Much Do Funeral Flowers Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Didn't hurt the pocketbook
Paid: 43.00
I called my dentist because my tooth had been hurting for a week and a half. I couldn't eat or sleep. It was horrible. They got me in the next day. The dental surgeon and staff took x-rays, verified that it indeed needed to come out... [more]
-Anxious in Augusta
Tooth Extraction Cost
Current cost of skirting job 2022
Paid: 2356.00
Purchased material @ mobile home supply store Front/back top trim & ground track 17 each [email protected]$9= $459. 48 [email protected]$17= $816. [email protected]$40 [email protected] $20 tax $121. Total material $1456. 3 guys total $75 hour labor at 12 hours $900 labor... [more]
-Fayard siding
Mobile Home Skirting Cost
Alatel joy tab2
Paid: 108.00
Cracked screen... [more]
-Shawn P Speers
Tablet Repair Cost
Replace 2baths, laundry, and kitchen to the street
Paid: 20000.00
Numerous breaks in 90 year old cast iron and also in the clay pipe. replaced with 4" schedule 40 ABS to the curb and then liner in the clay pipe to the city sewer... [more]
-Steve in 2022
Sewer Line Replacement Cost
Full mouth -Is this estimate too much?
Paid: 16945.00
Extract buttom front teeth, replace with single implant for both teeth. Root canals and crowns needed for 3 molars, fillings needed on 11 teeth. Deep cleaning with 4 spots of Arestin and fluoride treatment. All under IV sedation... [more]
-Shanmarspag
Dental Work Cost
Lockout at front door
Paid: 175.00
I was quoted $29 for a service call. The techniciandidn't give me a price but went ahead with the repair. It took about 10 minutes. Then he told me the charge was because the owner of the business gets most of the money I paid... [more]
-Carla Axelrod
Locksmith Cost